How to get ahead of your competition at an auction

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Auctions can seem intimidating. This is especially the case if you’re new to the property market or an inexperienced buyer. The ultimate aim at an auction is not only to outbid your competitors to win the property, but to get the lowest price possible. Success at an auction comes with practice, however it’s not all doom and gloom for first time investors. Here are some tips to get ahead of your competitors at auction.

Know what the property is worth

Before bidding at an auction, it’s important to have an understanding of what the property is worth. Investigating similar properties in the area which have been sold recently will give you an insight into the property’s valuation. Researching property values in the areas, speaking to local agents and looking at the market history in the area will help you set a budget for auction time.

Have a strategy

To maximise the likelihood of winning at auction, it’s important to formulate a strategy ahead of time. This strategy can include your buying budget, the way you intend to bid and even where you intend to stand on the day. If you’re new to property buying, a property advisor can provide assistance in formulating a buying strategy.

Be confident

When bidding at an auction it’s important to give your competitors the impression that you have endless amounts of money to invest. If your competitors believe that you have deep pockets, they will be more likely to fold earlier. Maintaining this impression involves what you wear, how you hold yourself and how confidently you bid. Although being confident is important when bidding at auction, don’t be overzealous and bid too high too quickly or get excited and exceed your budget.

Stick to your budget

Knowing what you’re prepared to spend and understanding what the property is worth should be firmly understood prior to auction time. Having a clear and focused mind during the auction will help you bid wisely and will minimise the likelihood of exceeding your budget or paying more than what the property is worth.

If you would like some advice on creating your own buying strategy, get in touch with us today.